About 85,000 Bitcoin Options Contracts Set to Expire This Friday
About 85,000 bitcoin options contracts, worth around $2.3 billion, are set to expire on major cryptocurrency futures and options exchange Deribit this Friday.
According to Deribit data, around 700,000 Ethereum options, valued at over $1.2 billion, are also set to expire on May 26.
"This Friday a total value of USD 3.6 billion will expire, which equals approximately 26% of Deribit's open interest," the platform said in a recent tweet.
It detailed that the leading cryptocurrency, Bitcoin, has a Put Call Ratio of 0.38, indicating a higher number of positive bets.
Bitcoin's maximum pain point, the point or the strike price where the largest number of options open interest will expire worthlessly, is situated at around $27,000.
This level carries significant importance, as it could act as a critical support or resistance area that intensifies price fluctuations.
The current value of Bitcoin contracts reaching expiry stands at an impressive $2.2 billion when converted to dollars. This staggering figure highlights the significance of the upcoming contract expiry and the potential impact it may have on the marketplace.
Ethereum, the second-largest cryptocurrency, has a Put Call Ratio of 0.49, indicating a marginally higher proportion of bearish sentiment.
Roughly 700,000 Ethereum options contracts have an expiry date of May 26, with a notional value of just over $1.2 billion.
Traders are particularly monitoring the max pain price, which is estimated to be at $1,800 for Ethereum. This level could act as a focal point for market movements and potentially impact the short-term volatility of the cryptocurrency.
As Bitcoin and Ethereum approach contract expiry, market participants could expect potential turbulence in the short term.
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